Preparation for Intraday Trading in the Stock Market, Securities Board Publishes Concept Paper
The Nepal Securities Board has published the 'Concept Paper on Implementation of Intraday Trading of Securities in Nepal, 2083' to implement intraday trading in the stock market. The Board proposes to initially start with 'Buy First, Sell Later' type trading and implement 'Sell First, Buy Later' only after the infrastructure for securities lending and borrowing and covered short selling is adequately developed.
Kathmandu. Preparations have moved forward to implement intraday trading in Nepal's stock market. The Nepal Securities Board has published a concept paper for the implementation of intraday trading and has sought necessary suggestions.
The Board stated that it has prepared and published the 'Concept Paper on Implementation of Intraday Trading of Securities in Nepal, 2083'. This concept paper prioritizes investor protection and is based on risk-based regulation, phased implementation, technology-based real-time trading and monitoring, and transparent market operation.
According to the Board's proposal, implementation will take place in the following phases:
- In the initial phase, 'Buy First, Sell Later' type trading will be started.
- Only after the infrastructure for securities lending and borrowing and covered short selling is adequately developed will 'Sell First, Buy Later' type trading be implemented.
Initially, only limited securities that are regularly traded, have sufficient liquidity, and have relatively low risk of market abuse can be made eligible for intraday trading. However, it has been proposed to expand the scope of trading after evaluating the experience gained during the testing phase and the risks.